When VP Edwards dusts off his TWO AMERICAS speech, he might want to
add an economics section.
Because there are really TWO AMERICAN ECONOMIES;
THE CHEAP MANUFACTURED GOODS ECONOMY;
AND, THE EXPENSIVE DOMESTIC SERVICES ECONOMY!
Basically, if it can be MADE IN CHINA, it will be made in China,
cheaply and with fairly good quality.
Thanks mostly to computerized manufacturing, more than to quality
labor.
BUT, SERVICES IN AMERICA ARE INFLATING WILDLY!
But, Greenspan doesn't seem to see this part of the US economy.
He keeps looking at all those BOATS FORM CHINA TO SUPPORT
HIS "PRODUCTIVITY MIRACLE." And to inflate Wall Street.
VIRTUALLY EVERYTHING THAT MUST BE DONE "LOCALLY," IN THE US, IS
EXPENSIVE--AND GOING UP FAST.
Medical and Dental Care, Insurance of ALL KINDS, including Health
Care, Housing, and most other "domestic economy assets," like Stocks,
Transportation Costs, Car upkeep, and other Repairs and Maintinance,
Food and Food Serivices, and Taxes and Fees, of course, etc. etc.
SO, THE REPORTED INFLATION NUMBER IS REALLY A "BLEND" OF THE CHEAPER
GOODS ECONOMY, AND THE MORE EXPENSIVE SERVICE ECONOMY!
DOLLAR STORES ARE WONDERFUL FOR THE POOR. BUT ALAS, WHAT IF THEY
HAVE TO GO TO THE DENTIST! OR HAVE A CAR REPAIRED!
BASICALLY, IN AMERICA TODAY EVERYONE HAS CHEAP GOODS GALORE;
WHAT SOME PEOPLE CAN'T AFFORD IS THE SERVICES! Like Insurance and
Taxes, health care, et al.
SO, THERE ARE TWO OTHER AMERICA'S, MR EDWARDS.
ONE CHEAP AND ONE COSTLY.
ONE INFLATIONARY AND ONE DEFLATIONARY.
DOES GREENSPAN EVEN CARE ABOUT THIS DANGEROUS ECONOMIC DICOTOMY?
AND OMINOUSLY, IS HE BUYING THE "BLENDED NUMBER" SCENARIO AT OUR
PERIL?
Well, maybe we will be OK, until the Chinese can deliver a pizza to
the US from Hong Kong in 15 minutes are less!
Ya suppose?
